Surat : There is some good news for world’s largest diamond cutting and manufacturing centre in Surat. India is poised to account for a significant portion of global diamond consumption in the coming years, with experts predicting that it could range from 20-30%. This is due to a number of factors, including the country’s growing middle class, its rising disposable incomes, and its strong cultural affinity for diamonds.
The United States (US) is the world’s largest diamond consuming market accounting for about 45% of the global consumption followed by China at 30%. India is fast catching up as the third largest diamond consumer market.
According to a report by the Gem & Jewellery Export Promotion Council of India (GJEPC), India’s diamond jewellery consumption is expected to grow at a CAGR of 10% over the next five years. This growth will be driven by a number of factors, including:
Rising middle class: India’s middle class is expected to grow to 547 million by 2025, up from 313 million in 2018. This growing middle class will have more disposable income to spend on luxury goods, including diamonds.
Increasing disposable incomes: India’s per capita income is expected to increase from $2,232 in 2022 to $3,249 in 2025. This increase in disposable incomes will lead to higher demand for diamonds.
Strong cultural affinity for diamonds: Diamonds are deeply ingrained in Indian culture and are often used to mark special occasions, such as weddings and engagements. This strong cultural affinity for diamonds is expected to continue to drive demand in the years to come.
In addition to these factors, the Indian government is also supporting the growth of the diamond industry. For example, the government has reduced the import duty on rough diamonds and has also set up a number of initiatives to promote the export of diamond jewellery.
The growth of India’s diamond market is expected to have a positive impact on the global diamond industry. India is already one of the world’s largest consumers of diamonds and its growing consumption is expected to boost demand for diamonds globally.
Here are some of the implications of India’s growing diamond consumption:
Increased investment in the diamond industry: The growth of India’s diamond market is expected to attract increased investment in the diamond industry. This investment could be used to develop new mines, expand existing mines, and improve diamond processing and manufacturing facilities.
More jobs in the diamond industry: The growth of India’s diamond market is also expected to create more jobs in the diamond industry. This could include jobs in mining, processing, manufacturing, and retail.
Higher prices for diamonds: The increased demand for diamonds from India is also expected to drive up diamond prices. This could benefit diamond producers and miners.
